Usually, you will not get completely indemnified financially. Legally, though, yes. Having a green card to do physical testing is a lot of fun. Some of the time the police do get called or whatever, I have stories. But, the short version is.... nothing happens. You have contacts high up at the company. You have a contract. It spells out you will be doing these things. You usually get paid some amount up front. It's enough to not worry about it very much and just do your job.

That makes total sense. I've read a few of Mitnick's "Art of" books and the l0pht story is really in line with that.

One technique that I found to be extremely useful, personally, is a "purposeful intellectual slowdown" with the express purpose of discovering just a couple personality traits that would lead to an exploitable route. As in, does this person like to laugh? Are they all business? It's a lot easier in person, but I've got tons of hours of phone practice through honest work that has honed the skill quite a bit. Once you find the "in" then it's easier to ramp-up the goal pursuit!